Phil Van Trump The Meredian Pilot Plant has been operating at full gear producing Meredian PHA for customer trials and validation! These materials in fact have already been used at a recent customer trial at Dart for a key project and are moving us ever closer to commercial validation with our partners. have surge capacity in the long term as we continue to grow. After the fermentation broth arrives at our facility we use our proprietary process noted in last month’s article to extract, purify, and dry the product for customer use. Our facility has been producing approximately 400 pounds per week of PHA, as we complete our improvements this capacity will continue to rise up to 3000 pounds per week when the 20,000 Liter vessel comes online! In fact, we will be the largest North American producer of PHA when this vessel comes online which we will be very proud of! Meredian launched a key relationship with Tate and Lyle, a contract fermentation provider, in order to provide fermentation vessels for us while we are executing on our plan to bring our new 20,000 Liter vessel online. This relationship has allowed us to accelerate our customer development cycle, provide external validation of our process, and enable us to 1 140 INDUSTRIAL BOULEVARD BAINBRIDGE, GEORGIA 39817 WWW.MEREDIANINC.COM MEREDIAN, INC. NEWSLETTER JUNE 2014 JUNE 2014 NEWSLETTER MEREDIAN, INC. NEWSLETTER JUNE 2014 Sean Schuyler The fields of gold have been harvested. The first truck arrived on May 13th and within two weeks, more than 850,000 pounds of locally grown canola was unloaded and stored in three tanks on site at the Agroreco facility (previously Propex). This is exciting news for local agriculture. Despite less than desirable weather conditions, yields in some areas were over 43 bushels per acre. A portion of this seed will be utilized to plant next year’s crop with the balance being crushed and used to support our research and development efforts. In anticipation of the harvest, the Meredian team worked diligently to be ready. The mechanical team headed up by Don Paul installed an unloading system and modified three of the eight silos on site at the new Agrocrush operation. With the help of teammates Tony Miller and Dennis Logue, the unload system could process each truck in about an hour. Plant manager Sean Schuyler was tasked with sampling and testing the seed as it was unloaded. The first challenge was to obtain the correct equipment along with some grading guidelines and instruction. USDA Certified scales and seed analysis equipment (GAC2500) were used to check and verify that the moisture content of the harvest was lower than 10% (most was around 7%). The locally grown canola was healthy and undamaged. Thankfully, there was very little farm debris in the samples. We took about a pound of seed sample from each load, which processed in about an hour. All samples were retained for further data analysis. 2 140 INDUSTRIAL BOULEVARD BAINBRIDGE, GEORGIA 39817 WWW.MEREDIANINC.COM We received helpful insight and encouragement from Greg Calhoun and his daughter Lacey, who walked Sean through the process ahead of deliveries and answered vital questions about the processing of the test samples. Additionally, Kathy Hornsby, the licensed weigher, was helpful in processing the paperwork associated with each load. Grading was assisted by Ben Holden and Abbey Smith. Their young eyes and steady hands were useful in this process. Next year we expect to receive about 700 truckloads of seed. With the harvest expected to last about 2 weeks we will receive a truck every 15-20 minutes. The unload system and quality checks will need to occur in minutes. The first full sized Crush line is scheduled to be installed April 2015. It is exciting to see the benefits of local agriculture partnering with local manufacturing. 3 140 INDUSTRIAL BOULEVARD BAINBRIDGE, GEORGIA 39817 WWW.MEREDIANINC.COM MEREDIAN, INC. NEWSLETTER JUNE 2014 The next challenge involved storing the seed in a climate controlled environment so as to prevent the seed from getting moldy in the South Georgia humidity. A series of fans and sensors were installed to circulate air through the silos. A portable grain temperature detection indicator allows our operators to check the tanks and confirm temperatures in eight zones. The portable indicator is plugged into a data port which is monitored and analyzed to ensure that an acceptable storage environment is maintained. MEREDIAN, INC. NEWSLETTER JUNE 2014 Michael Smith The build-out of the first reactor has begun! The engineers are busy and the construction workers are being scheduled: While this work is progressing with the outside team, the Meredian team has begun ordering the long leadtime items like gearboxes, sensors and dryers to be able to meet the commissioning date of December 20, 2014. The next two months will be spent ordering equipment and setting the construction schedule with no significant visual changes to the building or equipment; however, by mid-summer the plant will be full with teams of contractors. While 8 months to complete the facility may seem like a long time to some people it is actually a very aggressive construction schedule. The engineers are incorporating the learnings from our fermentation runs at Tate & Lyle into the plant design. These changes to the original design reflect advances made in the last three months to the manufacturing process that have resulted in higher yields. The engineering team will also be converting these design drawings into shop drawings used by welders and fabricators to assemble the pieces into a functional plant. 4 140 INDUSTRIAL BOULEVARD BAINBRIDGE, GEORGIA 39817 WWW.MEREDIANINC.COM Moving customers into larger facilities is necessary as Meredian’s current facility, even at the eventual fullsize volume of 60 million pounds per year, is too small for some of our customer’s product lines. The amount of polymer needed for one product can range from a few millions pounds per year to over 2 billion. As you can see the growth will not happen in the current plant but will be started here and moved to additional sites as soon as possible. With the beginning of the build-out we are transitioning into a very exciting time from producing samples to providing commercial production. Blake Lindsey The DaniMer team has remained focused on the continued efforts to complete all the requirements of the Henkel quality protocols. These efforts will allow us to progress toward pre commercial trials with several large brand owners. As you may recall, the renewable hot melt adhesive we have developed at DaniMer is the world’s first. Henkel is expected to partner with DaniMer following our development activities and launch the product using the vast sales resources of the Henkel team worldwide. Today, Henkel has the majority share of the global adhesive market and growth opportunities are difficult for them because they control at present such a dominant position. However, brand owners and Henkel customers are seeking options to be more “sustainable" in all of their packaging needs including adhesives. DaniMer has successfully invented a renewable hot melt adhesive that works well in a range of applications including the high volume segment of case & carton sealing. Products you every day such as cereal boxes, diaper boxes, soap, etc. utilize adhesives that are produced from petroleum. The adhesives we use today are not renewable and are difficult to recycle. 5 140 INDUSTRIAL BOULEVARD BAINBRIDGE, GEORGIA 39817 WWW.MEREDIANINC.COM MEREDIAN, INC. NEWSLETTER JUNE 2014 After commissioning of this first vessel, Meredian will have a capacity of 6mm pounds of finished product per year. We will use the production from this first fermenter to begin taking customers through the incubation cycle to full commercialization. It is at this time we will begin to explore options for the customers to build their own facilities or expand into the new 1mm square foot facility recently acquired by a partner / investor on Meredian’s behalf. MEREDIAN, INC. NEWSLETTER JUNE 2014 DaniMer offers an alternative that meets the adhesive quality needs and is price competitive testing was conducted this week in Bridgewater, NJ and additional tests will follow next week. Our immediate goal is to enable Henkel to complete all laboratory testing as soon as possible and enter the next phase which is field trials with customers such as Hershey and General Mills. We look forward to reporting our progress toward that goal in the next monthly newsletter. We continue to see growth in our injection molding resins for the single serve coffee pods and in our pet treat business. The production teams at DaniMer have enabled our customers to gain new business by offering a very consistent, quality product. At Meredian, the demand for PHA continues to grow and our customer partners are excited about the future potential use of these materials. We have active R&D efforts underway utilizing our Pilot plant's output of PHA where applications have been targeted for thermoformed materials (drink cup lids), flexible films (food storage bags, diaper backing films and agri-mulch), foam (food service articles like foam cups, trays, containers to replace polystyrene) and injection molding (disposable items such as razor handles) to aqueous solutions where water and grease resistance can be enabled for paper or fiber based materials. With the Pilot plants ability to provide regular weekly production output of PHA, our R&D teams are now positioned to respond promptly to our customer needs for samples to demonstrate the materials actual capabilities for the targeted applications. Scan to learn more about Meredian Explore our website at www.meredianinc.com filled with insightful resources 6 140 INDUSTRIAL BOULEVARD BAINBRIDGE, GEORGIA 39817 WWW.MEREDIANINC.COM
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